The U.S. smart building market size was valued at $16.02 billion in 2019 and is projected to reach $32.08 million by 2027, growing at a CAGR of 9.5% from 2020 to 2027. Smart building refers to a structure of the building which uses automated processes to automatically control the building operations which include lighting, security, heating, ventilation and other. In addition, smart building use different types of microchips, actuator and sensors, in order to collect data and manage it accordingly as per the business function. This technology enabled infrastructure help operators, owners and facility managers of the building to improve the reliability and performance of the building which further reduces energy use, optimizes how space is used and minimizes the environmental impact of building.
Rise in adoption of energy efficient building across the U.S. and supportive industry standards and regulation are the major factor driving the growth of the market. In addition, rise in adoption of IoT enabled building management system fuels the growth of the market. Moreover, high initial and maintenance cost and lack of technical expertise hampers the growth of the market. Furthermore, emergence of artificial intelligence in smart building and rising smart cities trends is expected to provide lucrative opportunity for the market.
The solution segment is expected to garner significant share during the forecast period. The major factors that drive the adoption of solution in smart building market include rise in adoption of this system by various real estate developer to improve their customer experience and to upsurge their overall revenue. However, the service segment is expected to grow at a highest rate during the forecast period, owing to rapid adoption of this services by various construction advisory and building owners across the U.S. Thus, driving the growth of the market in this segment.
By building type, the U.S. smart building market was led by the commercial segment in 2019 and is projected to maintain its dominance during the forecast period. The major factors that drive the adoption of commercial segment in smart building market include increase in awareness about the smart building solution among the commercial sector and various government initiatives for building smart building infrastructure. However, the residential segment is expected to grow at a highest rate during the forecast period, owing to factors such as increased awareness for smart homes, development of application specific solutions, and increased utilization of connected domestic appliances.
The report focuses on the growth prospects, restraints, and trends of the U.S. smart building market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers in the U.S. smart building market.
The U.S. smart building market is segmented into component, building type and region. In terms of component, it is fragmented into solution, service and connectivity technology. By solution, the market is further bifurcated into building infrastructure management, security & emergency management, energy management, network management, workforce management, waste management and others. By service, the market is further bifurcated into consulting, system integration & deployment and support & maintenance. By connectivity technology, the market is further bifurcated into cellular IoT, LoRa, NB-IoT, global navigation satellite system, Wi-Fi, SIGFOX, wireline, wireless personal area network and others. In terms of building type, the market is segregated into residential, commercial and industrial. Region wise, it is analyzed across the U.S.
Top impacting factors
Emergence of artificial intelligence in smart building
Implementation of artificial intelligence (AI) in smart building provides different types of applications such as traffic and parking management, video-surveillance, safe integration of autonomous ride-share vehicles, and others, can be of great significance. For instance, in the U.S., artificial intelligence AI is already being used in CCTV cameras for facial recognition, which can be used to provide further assistance to the citizens. In case of any medical emergencies, these AI-based cameras can help in getting a help from medical professionals on the scene. In addition, the facial recognition technology can also help in accessing personal information of a citizen in case of emergency. Similarly, sensors installed at parking lots and traffic signals are now using AI for accumulating useful data to plan the city initiatives among governments efficiently. Increased in number of such AI applications is expected to provide lucrative opportunities for the market growth.
Rise in adoption of IoT enabled building management system
Many real estate and commercial building are adopting IoT enabled building management system owing to its varied benefits which include lower cost of energy consumption, control of data, tenant satisfaction, and high security. In addition, various real estate developers are increasing their spending on IoT devices to easily manage different types of building operations such as buying property, selling property, giving 3D image of the property to the consumer and analyzing the property value. Furthermore, many real estate projects owners are using IoT enabled devices which is helping them to improve the overall efficiency and cut energy usage significantly as compared to conventional building. In addition, IoT enabled sensors deployed in smart building provide various benefits such as save money on energy costs, provides real-time control of air conditioning and improves the lighting and security of the building which is driving the growth of the market.
Key benefits for stakeholders
- The study provides an in-depth analysis of the U.S. smart building market share along with the current & future trends to elucidate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- An extensive analysis of the key segments of the industry helps to understand the U.S. smart building market trends.
- The quantitative analysis of the U.S. smart building market from 2020 to 2027 is provided to determine the market potential.
Key market segments
- Building Infrastructure Management
- Security & Emergency Management
- Energy Management
- Network Management
- Workforce Management
- Waste Management
- System Integration & Deployment
- Support & Maintenance
- Connectivity Technology
- Cellular IoT
- Global Navigation Satellite System
- Wireless Personal Area Network
By Building Type